iPhone Upgrade Program = Hard Check Every Year

[Cuniac]

I just spoke with Citizen One and they told me they need to do a Hard Check every time you renew the program. They also said you have 30 days from the time you set up the IUP to get a 2nd phone, after that its another hard check.

Getting a hard check on your credit every year is really bad. Is a hard check on your credit per year really worth the price of a phone?!?

 

[Cryates]

Don't you really get a hard check on pretty much everything that is financed? It's not that big of a deal, unless you like driving yourself into a ton of debt.

 

[Cuniac]

Kinda, But 1 hard check a year when it stays on your account for up to 3 years is ruff. It can really put a dent in your score.

 

[shareef777]

I tend not to think about the checks on my credit history (still check my credit report to make sure the hit was something that I legitimately applied for). I currently have 6 hard checks on my report, three from one place (home loan). The credit checks are the only item on my credit report that's rated as 'poor', but I still have a score of over 800 and haven't had an issue getting approved for anything and always qualify for the best rates.

 

[aesc80]

Hard checks can damage your credit if you're doing that every year. It's not so much damaging as, say, missing a payment or being late or defaulting, but it can still bring your score down a good notch for repeated credit requests. You're almost better served taking out a credit card with 0 APR for the first year, find a way to pay it off in the first year, then use that phone as "equity" to reduce the payment for the next phone on a different 0% introductory offer. I'm more surprised Apple just doesn't do what most furniture stores do - sync with a specific credit card company (like Synchrony) and offer a 2 year, 0% APR special incentive on any Apple iPhone purchase at full price. One credit check and a revolving credit card would be the only price to stay in the cycle.

 

[Cuniac]

Hard checks can damage your credit if you're doing that every year. It's not so much damaging as, say, missing a payment or being late or defaulting, but it can still bring your score down a good notch for repeated credit requests. You're almost better served taking out a credit card with 0 APR for the first year, find a way to pay it off in the first year, then use that phone as "equity" to reduce the payment for the next phone on a different 0% introductory offer. I'm more surprised Apple just doesn't do what most furniture stores do - sync with a specific credit card company (like Synchrony) and offer a 2 year, 0% APR special incentive on any Apple iPhone purchase at full price. One credit check and a revolving credit card would be the only price to stay in the cycle.

I agree totally. now I can either stay in this plan and chip away at my credit each year or buy out my phone next year and to a carrier plan. Either way this is exactly what I didn't want to end up doing. I'm so disappointed.

 

[orijinal]

They also said you have 30 days from the time you set up the IUP to get a 2nd phone, after that its another hard check.

Can you clarify what you mean by this, maybe with an example as well? Thank you.

 

[melman101]

There is plenty of time for policies to be revised, etc.

 

[aesc80]

Can you clarify what you mean by this, maybe with an example as well? Thank you.

I believe OP meant if you're looking to finance a second phone within your line of credit, you can do so without a hit against your credit again only if you do it within 30 days of your loan being accepted.

 

[jpgr15]

There is plenty of time for policies to be revised, etc.

Let's hope so. If this hard check can get figured out, this really is a great program for someone who likes to upgrade yearly without the hassle of selling.

 

[leesweet]

I'm surprised they said that and it may change over the next year if enough people complain to Apple. It was supposed to be that once you had a relationship with Citizens they would then only need to do a soft pull on a 'renewal'. So this is all confusing.

 

[pudcraft]

I'm not a fan of applying for loan after loan after loan. Like the above poster, it should be one hard check then soft pulls, but I guess as the loan expires they need to ping you again for any changes before issuing a loan again. Should have just made it a credit line.

I do like Verizon is now offering yearly upgrades to new iPhones if you got a 6s or 6s+. Cheaper per month and no need to hit my credit over and over. SquareTrade will suit this option well.

 

[JAT]

Two other options:

T-Mobile does not do a new hard check for subsequent phones with their 2-year financing.

PayPal Credit gives 6 months no interest on any purchase greater than $99, and is available via Apple, and may not even do a hard check the first time you use it.

 

[DoofenshmirtzEI]

Hard checks are bad when 1) they're recent, and 2) there are a lot of them. That signals to the credit reporting company that you are in a bind and desperate to get credit. An isolated hard check will cost you a few points for a couple of months. Even one a year isn't a big deal, but if you have other needs for credit where you're getting hard checks you might want to evaluate.

 

[lordofthereef]

I've always believed that credit is there to use it. I think too many people dwell on their scores. Sure, if you're planning on buying a house soon, maybe be extra careful. But why

Hard checks are bad when 1) they're recent, and 2) there are a lot of them. That signals to the credit reporting company that you are in a bind and desperate to get credit. An isolated hard check will cost you a few points for a couple of months. Even one a year isn't a big deal, but if you have other needs for credit where you're getting hard checks you might want to evaluate.

/thread

 

[Applejuiced]

Kinda, But 1 hard check a year when it stays on your account for up to 3 years is ruff. It can really put a dent in your score.

Then don't do it.
If your payment history is good then this wont matter much.

 

[dedufour41]

I received this info Saturday in a chat. The rep and their manager contacted Citizens One and I asked them twice to be sure. There will only be one "hard pull" with the first phone, not further upgrades.

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[Orien]

You're going to get different answers depending on the rep you ask. None of those front-line reps have any idea.

 

[mobutt]

Why would there be consistent hard checks every year when you've already established a relationship. Makes no sense. I've returned my phone twice and had to go through the application both times but it didn't show up as a hard inquiry either time.

 

[dedufour41]

You're going to get different answers depending on the rep you ask. None of those front-line reps have any idea.

Well that was the reason I delved further that day. Had received false information prior to release date about the "hard inquiry" subject specifically and read about the conflicting experiences of release day customers so I contacted support.

I explained the widespread concern and situation and the rep contacted their manager. After further investigation they told me to hold and wait while they contacted Citizens. Now either they're so diabolically messed up that they kept me on hold for 10-15 minutes to "sell the BS" or they might have been telling the truth.

Admittedly, I believe that that is definitely possible. LOL

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[Orien]

Well that was the reason I delved further that day. Had received false information prior to release date about the "hard inquiry" subject specifically and read about the conflicting experiences of release day customers so I contacted support.

I explained the widespread concern and situation and the rep contacted their manager. After further investigation they told me to hold and wait while they contacted Citizens. Now either they're so diabolically messed up that they kept me on hold for 10-15 minutes to "sell the BS" or they might have been telling the truth.

Admittedly, I believe that that is definitely possible. LOL

@@

I honestly don't even think most "managers" know.

 

[dedufour41]

I honestly don't even think most "managers" know.

I'm going under the premise that it's just a one time Hard Pull, because doing it every year makes no sense!

Besides, if they do indeed yank me down twice I'll gladly cry foul to Apple and that pic is exhibit A.

@@

 

[Rayy42]

I agree one HP then once Citizen's gets an accurate picture of your payment history then it should be SP's after.

 

[Cuniac]

I really do hope that either the rep I spoke with was wrong or that this will change if it's true. I just can't imagine why they would do it like that.